US stocks finished the week at fresh all-time highs, though volumes remained
uninspiring and volatility stayed at historically low levels. Breadth expanded
with the Transports, Russell 2000 and the NASDAQ joining the S&P at new
highs. The Dow held back some, which may have been partially due to quarter-end
profit taking and rotation out of large caps. Small caps and banks, in
particular, benefited by an aggressive push by President Trump and
congressional republicans to get a tax reform package approved by the end of
this year. The growing hopes for fiscal stimulus reignited support for the
reflation trade resulting in a move higher in rates and notable bounce in the
Greenback. Treasury yields backed up and curves steepened. Central bank speak
was pervasive with officials on both sides of the Atlantic indicating a
continued willingness to push ahead with the admittedly gradual pace of
normalization. Markets appeared to be heartened on Friday, when it became clear
that President Trump will make a decision on an appointment to the Fed chairman
post in the next few weeks. The data was mixed with certain inflation readings
and housing figures missing expectations once again, while manufacturing
continued to exhibit strength highlighted by the Richmond and Chicago PMIs. WTI
crude prices reached the highest level since mid-May, which may have had some
influence on the US weekly oil rig count rising for the first time since
mid-August. For the week the DJIA gained 0.2%, the S&P500 added 0.7%, and
Nasdaq was up 1.1%.

In corporate news this week, Nike posted a big Q1 beat on its bottom line,
noting strong sales growth in its international divisions, but the apparel
giant saw waning revenue in North America. Target announced it would boost its
minimum hourly wage for employees to $11/hour this year, with an aim to reach
$15/hour by 2020. Equifax’s CEO stepped down amid ongoing blowback from its
massive data hack. The Saudi Finance Minister reportedly informed bond
investors that the Aramco IPO will go forward in 2018 as planned, despite
rumors of a delay to 2019. Bombardier shares were hit after the US announced it
would slap hefty tariffs on its jets, and the move also registered complaints
from the Canadian and UK governments.

SUN 9/24
(DE) Germany exit polls suggest Merkel's party finishes 1st in German election;
anti-migrant party to enter parliament; AFD Party to enter parliament for first
time - tweet by financial press
(NZ) New Zealand Election Results: Ruling National Party 46.6%; Labour 35.5%;
neither party wins enough seats to have a majority in parliament, will have to
use nationalist New Zealand First Party to form a coalition